Obama has acknowledged that he was unable to force the hand of the Israeli prime minister, Benjamin Netanyahu over settlements.
Photograph: Jim Watson/AFP/Getty Images

Israeli prime minister, Binyamin Netanyahu, will not be attending next week's nuclear summit in Washington. According to Israeli officials, he pulled out of the meeting after "learning that Egypt and Turkey may have been planning to use his appearance at the conference to call on Israel to sign the nuclear non-proliferation treaty (NPT) and to open its nuclear facilities to international inspection".

Upon closer examination, though, this justification seems very hollow and is probably not the real reason why Israel cancelled. First and foremost, nobody was going to force Israel to sign the NPT. All that was going to happen was that two countries, with whom Israel has full diplomatic relations, were going to address this issue.

In any case, it would have been a minor part of the summit and the other countries still outside the treaty – India, Pakistan and North Korea – would almost certainly have been mentioned too.

What Israeli officials are not talking about is the most probable reason behind this cancellation – Netanyahu's unwillingness to stop settlements in East Jerusalem, despite US requests.

The last time Netanyahu was in Washington, he got a severe dressing down for his construction policies in the city. This was almost two weeks ago. Since then, nothing has changed. Netanyahu and his officials have said clearly and unequivocally said that despite US requests, Israel will not stop construction in East Jerusalem.

Therefore, why should Netanyahu go to the US again when he has nothing new to offer? He knows full well that the settlements issue will come up in the press, and in his meetings with some US officials. The prime minister lost credibility with key US decision-makers at the White House in his last meeting, where he received a dressing down.

Even Fox News, which has been one of Israel's staunchest supporters, recently slammed the way Netanyahu continues to ignore US requests regarding the peace process. If he were to go back to the US again so soon with the same policies, then he would receive the same treatment, if not worse – with a further worsening of bilateral relations between Israel and the US.

What should concern Israel's decision-makers is that Netanyahu's settlement policies are not only affecting relations with the US. They are also affecting Israel's capability to defend its interests, not only in foreign policy, but also those directly impacting on its security.

One of the main goals of the summit is to block the spread of nuclear weapons to militant groups. As Dr Avner Cohen, the author of the forthcoming book, The Worst-Kept Secret: Israel's Bargain with the Bomb, stated in a recent TV interview with Russia Today: "The issue of nuclear terrorism is close to Netanyahu's heart, and he should have come to the summit."

The issue of nuclear terrorism is close to many Israelis' hearts, not just Netanyahu's. By refusing to attend, Israel will be missing a vital opportunity to stand shoulder to shoulder with other countries in addressing, and cooperating, over this very important issue. This impacts on Israel's security directly as Israel needs the co-operation of other countries – for example, politically or in intelligence-gathering.

As the issue of settlements is undoubtedly one of the main reasons behind Netanyahu's refusal to attend the summit, what it means is that the settlements policy is becoming an liability with regard to Israel's security concerns.

The impact of Netanyahu's decision on Israel's foreign policy standing is another matter of concern. By refusing to attend, Netanyahu has placed Israel alongside Iran in the category of countries which will be absent from the summit. The only difference is that Iran was not invited, even though it would have dearly loved to attend in order to use the platform to represent its own interests. This is why it is arranging its own conference, scheduled for 17 and 18 April.

Israel was invited, but refuses to attend because it doesn't like what two countries are going to mention. Their opinion was not going to prevent Israel from using the summit as an opportunity to represent itself in a respected international forum. Nor was it going to stop the Israeli government from using the summit to improve the country's battered image and standing in the international arena. Not to mention the fact the summit could have been used by Netanyahu to address Israel's valid concerns about Iran's nuclear programme with the leaders of the world's most powerful countries, who are discussing further sanctions against Iran.

They need Israel's co-operation more than ever, and Israel needs their backing in addressing this important issue. This is not the time for Netanyahu to turn his back on them and the international community. The issue of the Iranian nuclear programme is far more important and urgent than the current Israeli government's settlement policies.

The expansion of construction in East Jerusalem must stop, in order to enable Israel and the international community to address Ayatollah Khamenei's nuclear ambitions. To do so, Netanyahu should realise sooner rather than later that he can't have his Iranian yellowcake, and eat it too.

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